Opposition calls for Parliamentary VAT debate
Kaieteur News
January 19, 2007
Alliance for Change Member of Parliament Raphael Trotman is seeking a leave of the National Assembly today, for its adjournment to discuss the manner of application of the Value Added Tax.
In a letter to Deputy Speaker of the House, Clarissa Riehl yesterday, seeking her indulgence to raise the matter at an appointed time during the sitting, Trotman noted that since its implementation on January 1, the tax has been a tremendous source of confusion within the populace and has led to unnecessary and unwanted criticisms being levied by, against and between the Guyana Revenue Authority and the private sector.
Trotman posited that he and his parliamentary colleagues are of the firm opinion that the issues pertaining to the application, supervision and collection of the Value Added Tax, whether considered singly or collectively, give rise to an issue that is a “definite matter of urgent public business” within the meaning, intendment, and spirit of Order 12(1) of the Standing Orders of the National Assembly.
He pointed out that there is not a citizen who is not concerned about the presence of this tax and the fairness and efficiency surrounding its application.
“A reading of the newspapers, a view of countless television programmes and the soundings of the disclosures taking place amongst the citizens do qualify this matter as being appropriate for debate by this honourable Assembly,” Trotman said.
Trotman told this newspaper that the main focus of his proposal will be for a widening of the zero rated and tax exempt products.
He posited that the debate is not being advocated in an effort to create animosity but rather to give direction to the GRA through Government, for a review of the application of the tax.
Trotman opined that rather than wait one year for a review of the new tax system, it could be done now.
Whether or not the 16 per cent rate is proving unconscionable is another issue which Trotman hopes to bring to the table for debate.
He stressed that since the implementation of the tax, consumers have been calling for it to be removed, suspended or reviewed because of its negative impact on them.
It is for this very reason, he said, that the AFC had called on Government to suspend, review and re-implement the VAT system.
“This new tax system is causing people to cry out. Basic necessities such as hygiene products like soap, toothpaste and soap-powder that before did not attract consumption tax now carry a 16 per cent tax as a result of VAT… These are items for everyday use and with the state of the economy as it is, the additional tax now being applied to items for the first time is unbearable to poor people,” Trotman said.